Andy Burnham Refuses to Rule Out Tax Rises in Autumn Budget
BBC News
Image source: Henry Nicholls - WPA Pool/Getty Images
Image caption: Andy Burnham has refused to rule out tax rises in the upcoming autumn Budget.
By Rachel Clun, Business Reporter
Published 4 hours ago
Andy Burnham, the Prime Minister, has refused to rule out tax increases in the forthcoming autumn Budget, stating that he "won't be unrealistic" about the "challenging" state of public finances.
He emphasized a "careful approach" to the economy while defending his previously announced cost-of-living pledges as funded spending commitments. Burnham became Prime Minister in July, promising relief and support for people struggling with rising living costs, but questions remain regarding the funding of major policies like social care reforms.
Experts have cautioned that he and Chancellor John Healey may have limited fiscal flexibility in their first Budget on October 28th. During his first visit to Ukraine, Burnham highlighted that policies like capping bus fares at £2 and cutting VAT on household electricity bills were "the first steps" he could take, made possible by reprioritizing funding from other areas.
When asked if the public should expect some new policies to be funded through tax rises, Burnham replied that they need not necessarily accept this. He added:
"I will always take a careful approach... I won't take risks with people's jobs or their livelihoods or their family finances. I have already done some things that will help them."
Burnham previously indicated to the BBC that his earlier announcements aimed at tackling the cost of living are not sufficient and hinted at further support. He emphasized, "I won't be unrealistic... We are in a challenging position."
Recent official figures showed the government borrowed more than expected in July, despite record income tax receipts. Inflation also reached a four-month high of 2.9% in July, expected to rise further due to the Iran war's impact on energy and fuel prices.
Experts have advised Burnham and Healey to either raise taxes or cut spending elsewhere as pressure on public finances leaves no room for additional borrowing. Both the Prime Minister and Chancellor have pledged to adhere to fiscal rules set by former Chancellor Rachel Reeves, designed to ensure day-to-day spending is funded through tax revenue by the end of Parliament and to reduce debt as a proportion of GDP.